{"id":31809,"date":"2018-03-02T09:43:25","date_gmt":"2018-03-02T14:43:25","guid":{"rendered":"http:\/\/olduvai.ca\/?p=31809"},"modified":"2018-03-02T09:43:25","modified_gmt":"2018-03-02T14:43:25","slug":"the-brick-mortar-retail-meltdown-february-update","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=31809","title":{"rendered":"The Brick &#038; Mortar Retail Meltdown, February Update"},"content":{"rendered":"<header>\n<h3 class=\"entry-title\"><a href=\"https:\/\/wolfstreet.com\/2018\/03\/01\/the-brick-mortar-retail-meltdown-in-february\/\">The Brick &amp; Mortar Retail Meltdown, February Update<\/a><\/h3>\n<\/header>\n<div class=\"entry-content\">\n<p><strong>And private equity is all over it.<\/strong><\/p>\n<p>The brick-and-mortar retail meltdown \u2013 despite protestations to the contrary \u2013 continues with a mechanistic air of inevitability. This started in 2015, took off in 2016, and picked up pace and magnitude in 2017, a progression I <a href=\"https:\/\/wolfstreet.com\/category\/all\/brick-and-mortar\/\">documented<\/a> along the way. Now in 2018, there has been a <a href=\"https:\/\/wolfstreet.com\/2018\/02\/01\/the-brick-and-mortar-retail-meltdown-in-january\/\" target=\"_blank\" rel=\"noopener\">brutal January<\/a> and here\u2019s the even more brutal February.<\/p>\n<p><strong>Bon-Ton Stores filed for Chapter 11 bankruptcy<\/strong> on February 4. The filing by the regional department store chain based in Pennsylvania was the largest bankruptcy filing by a retailer in 2018. It had been discussing with its creditors a restructuring of its debts, but that had turned out to be fruitless.<\/p>\n<p>This was a surprise to no one. In September, the company <a href=\"https:\/\/wolfstreet.com\/2017\/09\/08\/brick-mortar-meltdown-bon-ton-department-stores-hires-bankruptcy-advisor\/\" target=\"_blank\" rel=\"noopener\">hired bankruptcy advisers<\/a> to deal with nearly $1 billion in debt. In December, it defaulted on an interest payment. In January, after the 30-day grace period, it announced it had entered into forbearance agreements with some of its lenders. Over the make-or-break holiday selling period, sales fell 4.2%. On February 1, it announced more details on a new wave of store closings, involving 42 of its 260 stores. Liquidation sales in those stores began on February 1. Its shares are in the process of becoming worthless.<\/p>\n<p><strong>Bi-Lo is preparing to file for bankruptcy<\/strong> as soon as March and shutter nearly 200 stores, <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2018-02-17\/winn-dixie-and-tops-owners-are-said-to-prepare-for-bankruptcy\" target=\"_blank\" rel=\"noopener\">Bloomberg<\/a> reported on February 16. The company, which owns the Winn Dixie, Harveys, Fresco y Mas, and Bi-Low supermarkets, is buckling under $1 billion of debt. About 50,000 jobs could be affected.<\/p>\n<p>The low-margin supermarket business has entered a period of major upheaval \u2013 not from online competition which hasn\u2019t taken off yet in the US, but from competitors with deep pockets that are barreling into the stagnating market, including the expansion plans of German deep-discounter Aldi, and the moves by the likes of Walmart and Target.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Brick &amp; Mortar Retail Meltdown, February Update And private equity is all over it. The brick-and-mortar retail meltdown \u2013 despite protestations to the contrary \u2013 continues with a mechanistic air of inevitability. This started in 2015, took off in 2016, and picked up pace and magnitude in 2017, a progression I documented along the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[19032,3571,4254,14182],"class_list":["post-31809","post","type-post","status-publish","format-standard","hentry","category-economics","tag-brick-and-mortar-retail","tag-retail-sales","tag-wolf-richter","tag-wolftstreet"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31809","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=31809"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31809\/revisions"}],"predecessor-version":[{"id":31810,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31809\/revisions\/31810"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=31809"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=31809"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=31809"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}